TP70 2008 (II) VCT plc

16 February 2009

Interim Management Statement for the quarter ended 31 December 2008

TP70 2008 (II) VCT plc has pleasure in submitting its interim management statement for the quarter ended 31 December 2008. This constitutes the Company's second interim management statement for the financial period ending 31 March 2009, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

Net assets at 31 December 2008 comprised:

		31 December 2008 Unaudited				30 September 2008 Unaudited				30 June 2008 Unaudited
		£'000		%		£'000		%		£'000		%
Fixed asset investments at fair value		1,123		5.6		-		-		-		-
Financial assets at fair value		4,319		21.9		5,301		25.7		6,528		29.8
Net current assets		14,313		72.5		15,346		74.3		15,384		70.2
		19,755		100.0		20,647		100.0		21,912		100.0
Net asset value per ordinary share		86.3p				90.2p				94.9p

Investment Activity

The financial assets at fair value figure represents the company's exposure both directly and indirectly to GAM Diversity. During calendar year 2008 GAM Diversity disappointingly returned -14.6% in sterling terms. This return outperformed the major hedge fund performance indices and also compares favourably with the decline of 29.9% in the FTSE All-Share index. 

A notable feature of the quarter is that the company initiated its exposure to VCT qualifying holdings making investments in MGS North West Limited and MGS West Midlands Limited, shown as fixed asset investments at fair value in the above net asset statement.

Material Events and Transactions

During the quarter no shares were issued and no shares were purchased by the company for cancellation. 

As outlined above, in 2008 GAM Diversity succeeded in isolating investors from the worst excesses of asset value collapses and was also creditably resilient amidst well-publicised hedge fund redemptions. However, GAM Diversity gave notice in December to extend the period required to realise investments from monthly on 45 days' notice to quarterly on 95 days' notice.  As a result Julius Baer gave notice to increase the spread above LIBOR applying to the swap covering half the company's exposure to GAM Diversity from 0.9% to 1.25%.

Further Information

For further information, please contact David Dick or Chris Tottle at Triple Point Investment Management LLP on 0207 201 8989.

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